What feature identifies a high wave candle?

A high wave candle is characterized by having very long upper and lower shadows, indicating significant indecision in the market. The lengthy shadows suggest that there was considerable movement in price, both upward and downward, during the trading period, but ultimately the opening and closing prices are relatively close to each other, resulting in a small body. This visual representation highlights a market that is experiencing uncertainty, as neither buyers nor sellers have been able to gain control.

The presence of long shadows demonstrates the struggle between buying and selling pressures, making the high wave candle a useful tool for traders seeking to identify potential reversals or the continuation of price movements. When traders see this type of candle, they often look for additional confirmation in subsequent sessions to determine future price action.